Softer sterling as risk of hung parliament....>

FOREX: Softer sterling as risk of hung parliament inches higher

-After cresting at a new multi-month high of $1.3215 late Tuesday, GBP/USD shed

as much as a point or so upon release of the second and final revision of the

YouGov MRP model, showing the Conservative majority halving to stand at just 28

seats. YouGov warned that their projections now have a hung parliament within

their margin of error. The losses have been held here ahead of the NY crossover,

with $1.3101/08 now sitting as immediate support. The move in GBP is far less

clear in EUR/GBP, however, which holds close to multi-year lows printed earlier

this week at 0.8393.

-At the other end of the scale, SEK is the firmest in G10 after

better-than-expected inflation numbers for November. EUR/SEK is now testing 8

month lows and eyeing 10.4550 as initial support. A clear break through here

would open downtrend channel support that's held since early October.

-Elsewhere, much of the focus rests on today's FOMC rate decision and subsequent

press conference. Ahead of that though, US inflation data for November will take

focus at 1330GMT/0830ET.